Cancelling the pre-owned 7yr/100,000 powertrain warranty

Nope. The certified warranty is part of the car. Much like power windows. But, the certified warranty only covers the gas engine and cvt tranny. What you specifically want to ask for is the "wrap" warranty. That is the more traditional "bumper to bumper" warranty that takes into account the cost associated with the certified warranty. Generally, it is cheaper than if your car had no warranty at all.

But, you must purchase the wrap warranty at time of sale.

 

The problem you have is that he is the only dealer you can purchase it from since it is a used car. Do you know what the exact "in-service" date is? If not, if you want to PM me your vin, I can look it up. But it should be written on your certified booklet. The other date would be the day the cert warranty expires and subtract 7 years. Also, how many miles are on the vehicle as we speak?

 

I know, it sucks. You are absolutely at the mercy of the dealership. The only thing you can do is try to talk to the finance guy and tell him you want to pay $1250. That gives him enough profit to kep him happy and gets you your warranty. If he is smart, he should think of having half a loaf of bread instead of no loaf at all.

 

I'd estimate at least a 30% chance that if you ever need that warranty the company will be out of business.

 

richard, I assume you are speaking of if he decides to go with an aftermarket warranty, correct? So far, I have understood it to be toyota warranties only. But I do agree that aftermarket warranties are, in general, junk. We have a 2007 FJ in the shop with 74k miles with a shuddering problem in the trans. Needs a new one. His aftermarket warranty (purchased from another dealer) will only pay to have a remanufactured one installed. And that is after 6.5 hours of negotiating with them.

 

If warrantydirect and Toyota are the same price, swallow your pride and get the toyota warranty. Much easier to deal with, and you can be sure your warranty will still be valid. Many aftermarket warranty companies are around for 3-4 years, file for bankruptcy protection, and then start up under a new name.

 

In general, if it doesn't say Toyota across the top, run like the cops are chasing you. I would gladly pay a bit more to get the real thing.

And since you have a certified car, he will only offer you the toyota wrap warranty. It is 300-400 cheaper in cost than buying the standard toyota warranty with certification. Basically, a wrap warranty from toyota will cost him less money than an aftermarket warranty of the same term and mileage.

 

Hi Jeff,

Suppose your customer with the 2007 FJ was still covered by the Toyota 5 year/60K mile powertrain warranty. What would Toyota pay for?

I'd be really surprised if the Toyota warranty would cover a new transmission. I thought that the usual standard is to install a remanufactured unit which is warranted to be the functional equivalent of new.

 

A certified wrap warranty is the name for a 7yr/100k platinum warranty available to certified cars only (since the cert already covers the powertrain). You could always purchase an EW on a certified car with different terms and miles, but the cost will go up (due to them charging for the powertrain, i.e. no discount for being certified). It is just the way Toyota has it set up. Mitsubishi does the same thing. I suspect GM and Chrysler have something similiar due to their powertrain lengths.

He will just submit the paperwork a few days late. No big deal, happens all the time. If you let it go by 2-3 weeks, that is a different story though.

Yes, dealers will always use the factory warranty when making claims if possible. His has 74k, so this can't be the case. However, we might even be able to "good will" the tranny through toyota. Since he didn't buy it from us, we won't use our money to do that. We will let the selling dealer do that if they choose to.

Toyota will never use a reman part if it is under the original warranty, and very doubtful they will use a reman part under an extended warranty. Not worth it to them to risk the reman going bad sooner than a new unit. The difference in dollars between the two make sense to toyota as far as building loyalty. Extended warranty companies do not have that luxury.

 

Correct. I don't expect Toyota to go out of business in our lifetimes.

 

It is now too late to get Toyota's *extended* warranty on this car; the original Toyota *factory* warranty remains in effect.

A fair price for a "wrap" is "zero". It is not worth buying any third-party extended warranty. Save your money.

To protect yourself you should have paid a Toyota Prius technician to thoroughly inspect the car before you bought it. If there was anything wrong with it you should not have bought it. There is no extended warranty that will protect you from a car that's already damaged.

Good luck!